Learning Center

Insurance Fraud Prevention

American Family Special Investigations Unit

American Family understands the financial impact of insurance fraud – about $30 billion a year, according to the Insurance Information Institute.

Deceptive insurance claims make it more expensive for us to do business. Worse yet, they affect the premiums honest customers like you pay for your coverage.

That’s why we’re fully committed to fighting insurance fraud. In fact, we have an entire Special Investigations Unit dedicated to detecting, deterring and investigating this national problem.

Defining the issue

What is insurance fraud? In general, it’s when a person or group intentionally deceives another in order to receive insurance money or benefits not legally theirs. 

Such fraudulent actions range from normally honest people providing false information on an application to get a lower premium ... to a policyholder burning his car to collect the insurance money ... to organized crime rings.

No matter the severity of the action, though, insurance fraud is always wrong.

Measuring the problem

How extensive is insurance fraud?

• At least one in 10 property and casualty insurance claims involves insurance fraud, reports the Insurance Information Institute.
  
• As a result of insurance fraud, the average American household pays $200 to $300 a year in increased insurance premiums, according the National Insurance Crime Bureau (NICB).
  
• Insurance fraud is the second-most-costly white-collar crime in America, the NICB notes.

How you can help reduce the cost

If you know or suspect someone is committing insurance fraud, contact our Special Investigations Unit at (608) 242-4100, ext. 31061. Or, send an email to siureferral@amfam.com.

You can also report fraud to the National Insurance Crime Bureau by calling 1-800-TEL-NICB or texting the word FRAUD to 847411.